Seeking Alpha

Airfares up and costs down for U.S. carriers

  • The average airfare climbed 2% last year to $363.42 to mark the 4th consecutive year the industry managed to raise prices.
  • The 2% increase is fares is only mild compared to the costs airliners have eliminated by paring back unprofitable routes and increasing their load factors. Another drop in the revenue bucket is the $3.4B U.S. airlines raked in last year in baggage fees.
  • Fares are expected to increase again in 2014 with four companies - American Airlines Group, Delta Air Lines, Southwest Airlines, and United Continental - dominating market share.
  • Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, RJET, SAVE, ALGT, SKYW.
Comments (2)
  • SharkDude
    , contributor
    Comments (639) | Send Message
    So up 2% and UAL doubled in the past year??????
    16 Jan, 05:25 PM Reply Like
  • SharkDude
    , contributor
    Comments (639) | Send Message
    I bought round trip ticket from US to Asia for 800 bucks. Wow. UAL is crushing it.
    16 Jan, 05:41 PM Reply Like
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